/biz/ - Business & Finance

Step 1: MONEY to BANK
Step 2: BANK to WALLET
Step 3: WALLET buys COINS

>none of these events are taxable

Step 4: Sell coin
Step 5: Send money to bank

>these events are taxable

CAPITAL GAINS TAX
If you do not have a job, you only have to pay 1.5% tax on any trade. This means if you make $100 in crypto, you only have to pay $1.50 in taxes.
SOMETIMES IF YOU DO NOT MAKE $25,000 YOU DO NOT HAVE TO PAY TAXES BUT YOU STILL HAVE TO FILE

>OPTIONAL STEP
Exchanges sell coins for other coins at a fee, and need to get coins from a wallet.

op1: Wallet to Exchange (non taxable)
op2: Exchange coin for coin (taxable)
op3: Exchange to Wallet (non taxable)

Some exchanges are MUCH HARDER to get reports from. You will have to manually add up how much money you made or lost.